Cloud Application Adoption Continues to Rise

In the past two years, 64 percent of companies in a recent survey have implemented at least one software-as-a-service (SAAS) application. That number should rise during the next two years, as 77 percent of companies expect to implement at least one SAAS application. Additionally, in the next two years, the number of enterprises expecting to implement at least four SAAS applications will double from 17 percent to 33 percent.

Sheer volume of data collection by enterprises of all sizes is the key driver of SAAS adoption. Enterprises need as much help as they can get in processing, storing and archiving their data, so they are increasingly looking to SAAS applications to pitch in and either augment or replace their on-site IT. In the next 12 to 18 months, 57 percent of enterprises expect data volume to grow more than 25 percent. Less than 10 percent of enterprises expect data volume to be flat or decline. In fact, more enterprises expect data volume to double than to remain flat.

Forty-five percent of enterprises cited a lack of integration as the largest roadblock in fully harnessing the value of applications and data. Closely related to this point, nearly 50 percent of enterprises believe easily connecting applications and data would deliver better information that would result in better decisions.

Fifty-six percent of enterprises believe easily connecting applications and data would free more time for staff to work on other business initiatives. Fifty percent of enterprises believe simple application connections would enhance flexibility, time-to-market and competitiveness.

SnapLogic was most interested in determining what types of applications companies are most likely to integrate in the next year. The most popular response was BI/analytics tools (39 percent). Productivity/collaboration, sales, financial and social media applications rounded out the top five most sought-after connections.

During the next year, Facebook should remain king of social connections, as 33 percent of companies are likely to integrate data for it into other applications and services. Twitter also ranked highly, as 22 percent of enterprises have plans for integration.

Don’t let anyone tell you the recession is over. SnapLogic’s survey found that 69 percent of enterprises were more concerned with the cost of implementation than adaptability for future projects, speed of implementation or scalability with data.

The proliferation of smartphones and tablets has led to an increased demand for mobile IT management. Eighty percent of enterprises believe that applications for mobile IT management are important.

Big data analytics applications, such as Hadoop, have been getting a lot of attention, but when it comes to cloud application integration, they hardly even register. Less than 10 percent of enterprises plan to connect applications to big data solutions in the next year, and only about 15 percent have plans for it in the next three years.

As enterprises come to understand the value of cloud applications and integration, it’s not surprising that they are also starting to turn to cloud-based integration solutions. In fact, 42 percent plan to implement cloud solutions to address integration in the next two year, if not sooner.